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Bargaining over new sectoral collective agreements for 2005 and 2006 had been completed in many industries in Belgium by July 2005. Pay increases were the main point of contention, but automatic indexation of wages has been left intact, as have early retirement schemes.
The central social partner organisations reached a draft intersectoral agreement covering 2005 and 2006 in January 2005, following long and difficult negotiations. However, the membership of the Belgian General Federation of Labour (Fédération Générale du Travail de Belgique/Algemeen Belgisch Vakverbond, FGTB/ABVV) - one of the three signatory trade union confederations - later rejected the deal in a ballot. The main stumbling block was the indicative norm of 4.5% for pay increases over the two years - of which 3.3% represents indexation and 1% pay-scale increases applied only to white-collar workers and not to blue-collar workers (BE0502302F). The proposal thus could not be approved as a final agreement, and the federal government decided to apply the original draft agreement in its entirety.
Sectoral negotiations subsequently ensued over new collective agreements for 2005-6. By May, agreements had been reached (BE0505302F) in major sectors such as: large-scale retail; the food industry; international trade, logistics and transport; the chemicals industry; non-ferrous metals; metal manufacturing; printing works, graphic arts and newspapers; construction; and workers falling under the Auxiliary Joint Committee for White-Collar Employees. Here we summarise the main agreements reached since then, as of July 2005.
Latest agreements
- Textiles industry (covered by joint committee 120). The negotiations were lengthy and there was a great deal of tension between blue-collar workers' unions and the employers' federation, Febeltex. The Minister for Employment had to intervene. Under the agreement reached, although pay indexation is maintained, the 36,000 workers in the sector will not obtain a direct increase in their purchasing power. If inflation does not give rise to a second indexation-based increase in the course of 2005-6, wages can be raised by 2% from 1 November 2006 until the first indexation-based increase in 2007. Additional payments will be made to the sectoral 'social fund' and 'guarantee fund', which need this extra funding on account of the unfavourable economic situation in the industry. This refinancing was made possible because the unions agreed to do without a direct increase in workers' purchasing power. Existing provisions concerning early retirement (including special rules for workers who have performed night work), career breaks and commitments on employment and training have been extended and prolonged.
- Gas and electricity (joint committee 326). Both minimum and actual wages will rise as follows: from 1 January 2005 (backdated), an increase corresponding to the rise in the real prices index - 1.78%; from 1 October 2005, an increase of 0.4%; and from 1 January 2006, an increase corresponding to the rise in the real prices index at that stage. Measures relating to early retirement and flexibility are prolonged. The social partners agreed to discuss practical arrangements to address the lack of trade union representation in companies with 35 to 49 workers, and a joint consultative group has been set in place, which may intervene if problems occur.
- Oil (joint committees 117 and 211). Purchasing power has been maintained by an increase of EUR 0.20 per hour from 1 January 2005 and there will be another rise on 1 January 2006. Bonuses have been increased for workers on morning and afternoon shifts (by 0.5%) and night shifts (1.00%) on 1 January 2005. In addition, for joint committee 211, an increase in monthly wages (based on 13 payments per year) of 1.15%, with a minimum monthly increase of EUR 29.32, took effect 1 January 2005 - the same rise will be repeated on 1 January 2006. Workers at oil refineries in Antwerp opposed the draft agreement, in particular because of the very high profits earned in this subsector. Employers responded that each company is free to take additional initiatives for its workers, based on its particular circumstances. Exceptional bonuses can therefore be negotiated at company level.
- Brick-making (joint committee 114). Automatic pay indexation is retained, resulting in an increase of 0.5% . Furthermore, there will be an hourly wage increase of EUR 0.07 on 1 May 2005 with an overall guarantee of an increase of 4.5% over 2005-6. If indexation payments amount to less than 3.9%, the balance will be paid in December 2006 in the form of gift vouchers (in the amount of EUR 12 per 0.10% of deficit). The existing early retirement scheme is maintained. A new classification of job functions is planned for 2005. Finally, companies have agreed to make an effort to optimise training actions.
- Funeral services (joint committee 320). The pay indexation system is maintained, resulting in pay rises of 2%, and in addition wages will increase by 1.5% form 1 January 2006. The system of early retirement at age 58 is renewed up until the end of 2007. For the first time in this sector, it has been agreed that employers will pay 0.10% to fund measures for 'high-risk groups' on the labour market. Finally, a welfare fund will be created and will, provisionally, have the task of managing the collection and allocation of contributions for high-risk groups, as well as the special bonus paid to trade union members.
- Steel industry (joint committee 104 for blue-collar workers). This sector differs from others in that pay increases to safeguard workers' purchasing power are negotiated in companies by management and trade union delegations, rather than in the sectoral joint committee. Among other measures, the 2005-6 agreement provides for companies to pursue vocational training actions and to distribute training opportunities equitably among the different categories of workers, particularly the less qualified. The maximum duration of the right to a career break has been prolonged. The agreement also provides for the finalisation by the end of September 2005 of a charter on the implementation in companies of an optimal health and safety policy in the context of subcontracting and temporary agency work. Finally, most of the sector's early retirement schemes have been renewed. Only the maintenance of the half-time early retirement scheme from age 55 will be negotiated at company level.
- Ready-made clothing and textile products (joint committee 109). On 1 January 2006, there will be a general increase to maintain purchasing power of EUR 0.075 per hour, or EUR 0.1 for subcontractor companies for the automotive and tent trades. The maximum proportion of workers who may take career breaks rises from 5% to 8% and workers aged over 54 are not counted in the calculation. The threshold may be raised at company level with the employer's agreement and taking into account possibilities in terms of work organisation. The length of service required for payment of the first day of a period of sickness absence of more than one week is lowered from 10 to eight years. Lastly, the trade union bonus is increased by EUR 4.
- Flax preparation (sub-joint committee 120.02). In 1 October 2005, actual wages and pay scales will be raised by EUR 0.065 per hour. The trade union bonus is raised by EUR 4.10. Seniority-related leave rises from one to two days if a worker has at least 25 years of service in the same company - employers will bear the cost of this measure. Career break and early retirement schemes are extended.
- Food retail (joint committee 119 for blue-collar workers). The agreement provides for a wage increase of 4.5% (including indexation) over 2005- 6. For the largest companies, the increase is 4.7% (including indexation), plus EUR 70 a year.
- Security services (joint committee 317). The negotiations were tense, with workers organising protests in front of the headquarters of several companies. The agreement finally reached includes a net wage increase of 1.2% and an increase in the trade union bonus to the legal maximum currently in force. The early retirement scheme is maintained and the status quo holds on flexibility measures.
- Cleaning and disinfection (joint committee 121). In this sector, which employs 45,000 workers, the wage increase is set at EUR 0.125 per hour from 1 July 2005. Pay indexation is maintained. The sectoral agreement gives company-level trade union representatives a number of new rights and tools, such as strict limits on reasons for using subcontracting and monitoring of this issue by representatives, and the drafting of stress prevention plans.
Sectoral collective agreements for 2005-6 have now been reached in a large number of sectors. In addition to those listed above, other sectors involved include the concrete industry, sawmills, mirror manufacturing, glass-related industry, wood trade and catering. Negotiations are still deadlocked in only a few sectors, among them finance and banking. The banking sector (joint committee 310) has been experiencing unrest for a long time, especially at company level ( BE0502303N). It is proving very difficult to bring the sectoral negotiations to conclusion and the 'point of non-return' has nearly been reached several times. At the end of June, the social partners finally reached a draft agreement. However, the Belgian Bankers' Association (Association Belge des Banques/Belgische Vereniging van Banken, ABB/BVB) issued an ultimatum, setting 15 July 2005 as the deadline for ratifying the agreement - a move that irritated the sectoral trade union affiliated to FGTB/ABVV, causing it to reject the text. The Federation of Liberal Trade Unions of Belgium (Centrale Générale des Syndicaux Libéraux de Belgique/Algemene Centrale der Liberale Vakbonden van België, CGSLB/ACLVB) had already criticised the agreement as being inadequate while the sectoral affiliate of the Confederation of Christian Trade Unions (Confédération des Syndicats Chrétiens/Algemeen Christelijk Vakverbond, CSC/ACV) considered it quite a good basis.
Commentary
Wages have been the main bone of contention between the social partners in the 2005-6 bargaining round. The automatic indexation of wages has been left intact, as have early retirement schemes. There will probably not be any changes in this connection pending the results of a national 'end of career conference', to be held in autumn 2005 (BE0412306F). (Alexandre Chaidron, Institut des sciences du travail, Université catholique de Louvain)